4Ground Rule 2: Invest
John Kennedy once said,
The great enemy of truth is very often not the lie – deliberate, contrived and dishonest – but the myth – persistent, persuasive, and unrealistic.
When it comes to investing in the stock market, the myth is that great companies make great investments.
Nothing could be further from the truth.
That will never stop investors from trying to find those great companies. Just because it seems like everyone else is pursuing the myth doesn't mean you have to follow along. Let's explore this myth, the impact it could have on your portfolio, and, more importantly, the impact it could have on your life.
Beth and Mark wanted to talk business. They were set to embark on a new adventure in their careers, and it was time to get on track. Toward the end of our meeting, Beth quietly told me that the stock market caused her to feel anxious, stemming from her father's tortured experience of buying and selling stocks. She lived in a household where the mood at the dinner table was set by the gyrations of the stock market that day.
We spent a few minutes reflecting on those memories, and the journey many investors take to common stock ownership. We weighed the daunting task of buying and selling stocks over a lifetime of investing versus the benefits of buying all the stocks and holding them forever. Intellectually, I think she got it. Emotionally, ...
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